Johnstown Hotel sells for €13 million

Johnstown Hotel and Spa, Enfield, Co Meath, has been sold for a price believed to be approximately €13 million.

The hotel was bought by Mr John Sweeney, a Co Galway businessman with oil, property and hotel interests.

The vendor was a company that is associated with developer Mr Anthony Murray and other parties.

The hotel was opened in 2001 with 84 bedrooms, 12 conference/meeting rooms, a ballroom/ conference centre with seating capacity for 600, a restaurant and bars.

It has 60 acres of woodlands and gardens.

Mr Sweeney is to undertake the completion of 40 new bedrooms and a large spa and leisure complex at a cost of approximately €8 million, according to a spokesman. The new facilities are to be completed by March 2004.

Two years ago, the High Court appointed Mr John McStay as interim examiner to a company associated with Mr Murray, Lark Developments Ltd.

The court heard that the company had debts of more than €28 million and had experienced financial difficulties following a €14 million investment in Johnstown Hotel.

The court heard that Lark owned 79 per cent of the hotel project.

Creditors owed money included Anglo Irish Bank and the Revenue Commissioners.

Mr Murray told the court that the hotel, though open, would require further investment to complete the project.

He said the Johnstown Hotel development would, in time, be profitable and the appointment of Mr McStay would facilitate the survival of the project.

The hotel currently employs 70 people and this number is expected to rise to 100 as the final development is completed.

According to Mr Sweeney's spokesman, the hotel has enjoyed strong trading since it opened two years ago.